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On 2024-08-20 09:44, David Brown wrote:You are snipping a bit too much context - as it stands, it looks like some things are true simply because they are easy to say, which is of course nonsense.
That's an easy claim to make - saying something that sounds obvious and calling it a "fact". But that does not make it true in general.But sometimes it does.
Those are different situations again, but certainly closer than the production of "wotsits". Traditionally, books and records have relevant unit costs as well as base "development" costs, and then much of their later income comes from sources invisible to end users (like film rights or royalties).There are endless numbers of situations where price and cost are highly out of sync. And there are endless different ways in which price and cost can be measured for different things.Yes
Software development, licensing and sale is /totally/ different. The cost models are completely different. Base cost is high, but unit cost is near zero.Yes, and that is the problem. Not really a unique problem, e.g. books, music records etc.
It often surprises me that economic theories give any usable results at all. Most are based on total gibberish with no relation to real life, such as linear towns, totally rational customers, and such simplifications that they are close to meaningless. They basically work by the central limit theorem - with enough variables, results are fairly near an average for much of the time.... counting the potholes ...One could argue that there cannot be software market at all for costs-intensive stuff like OS and compilers similarly to the communal infrastructure like roads etc. That might be but it is another question.>
That might be a slightly less bad model than the traditional cost/price market model, but it's not good either.
Software is in a very different category from "real" things - and indeed there are many different categories of software with very different economic models. Any attempt to compare it to traditional economic market theory is doomed to be of little relevance.Maybe, but then we have what we have.
Then luck is even more the biggest part. Predictions are hard, especially about the future.The success or failure of software companies or products is mostly a combination of skill, hard work, diplomacy, ruthlessness and luck - with luck being perhaps the biggest part.The question is sustainability in long term.
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